Flood Insurance: Part of Homeowners Insurance or a Separate Policy?

Many people have homeowners insurance policies to protect their homes and belongings from perils. One hazard that many homeowners experience is unexpected water or flooding—whether it’s a sewer backup, burst pipe or damaging storm. But many homeowners don’t know which hazards are covered under their homeowners insurance and which may require different insurance.

Most homeowners insurance policies won’t cover flooding that begins outside the home. For example, homeowners insurance doesn’t cover floods caused by heavy rains, coastal waves or tide, groundwater or even strong spring thaws. For protection, you need to purchase flood insurance from your insurance company.

Whether the water damage is sudden or accidental, most homeowners insurance policies won’t cover flood damage, regardless of the water source. That is why it’s vital to have the right coverage before you need it. JJ Insurance can ensure your insurance can help cover any water incident.

What Is Flood Insurance?

Your homeowners insurance will cover certain types of water damage, but coverage depends on the source of the water and on how the damage occurred. If your home floods due to stormwater, an overflowing body of water or groundwater seeping or leaking into your basement, your homeowners insurance probably won’t cover it. Water damage from a sewer backup or overflowing sump pump is also an exclusion on most policies.

Flood insurance offers protection for your home and usually provides coverage for the following:

·       Electrical and plumbing systems

·       Flood debris cleanup

·       Furnace, water heater and central air conditioning

·       Structural damage

Flood policies vary, you should review your flood insurance with your insurer or begin a new policy to ensure you have flood coverage. Flood insurance doesn’t usually take effect until 30 days after purchase. However, if your lender requires that you have flood insurance to make, increase, extend or renew your loan, then there’s no waiting period.

Is There Flooding Assistance?

If the U.S. president formally declares your area a federal disaster, federal disaster assistance may be available. However, disaster assistance is often a loan that you need to repay with interest.

You are reimbursed for your covered losses up to the policy’s limits if you purchase flood insurance through the National Flood Insurance Program (NFIP). We can help determine if you qualify for FEMA flood insurance or need independent flood insurance.

What Can Affect Flood Insurance Costs?

If you live in a particular hazard area and have a federally backed mortgage, the NFIP requires that you have flood insurance. The price of your insurance premium can vary depending upon your property and its location. We can help you determine what flood insurance meets your needs and if you’re able to purchase your flood policy through FEMA.

The age of your home and its construction can also significantly impact your flood insurance. For instance, older homes without proper flood mitigation features, such as flood openings or barriers, or houses not built with modern floodproofing standards, will most likely cost more to insure. 

Understanding what your homeowners insurance coverage provides and when a separate policy may need to be purchased can help ensure you have protection from unwanted water, whether due to a natural disaster or something inside your home. Flood insurance can help safeguard your home and assets and give you peace of mind.